Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 11, Problem 12SQ
To determine
The marginal factor cost of the last employee.
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The marginal product of the 14 th worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14 th worker's marginal product is
$2.
$4.
$12.
$32.
Each of the following examples reflect some labour cost faced by an employer. Select all of
those which are considered quasi-fixed labour costs.
Select one or more:
a. Harpreet spent $1,000 advertising a recent job opening
b. Denise pays her entry-level employees an hourly wage of $20
c. John recently laid off five workers and gave them each $20,000 in severance pay
d. Ahmed's sales employees earn an average annual commission of $50,000
e. Amanda spends $5,000 per year on supplemental health insurance for each of her
employees
8
Chapter 11 Solutions
Micro Economics For Today
Ch. 11.3 - Prob. 1YTECh. 11 - Prob. 1SQPCh. 11 - Prob. 2SQPCh. 11 - Prob. 3SQPCh. 11 - Prob. 4SQPCh. 11 - Prob. 5SQPCh. 11 - Prob. 6SQPCh. 11 - Prob. 7SQPCh. 11 - Prob. 8SQPCh. 11 - Prob. 9SQP
Ch. 11 - Prob. 10SQPCh. 11 - Prob. 11SQPCh. 11 - Prob. 1SQCh. 11 - Prob. 2SQCh. 11 - Prob. 3SQCh. 11 - Prob. 4SQCh. 11 - Prob. 5SQCh. 11 - Prob. 6SQCh. 11 - Prob. 7SQCh. 11 - Prob. 8SQCh. 11 - Prob. 9SQCh. 11 - Prob. 10SQCh. 11 - Prob. 11SQCh. 11 - Prob. 12SQCh. 11 - Prob. 13SQCh. 11 - Prob. 14SQCh. 11 - Prob. 15SQCh. 11 - Prob. 16SQCh. 11 - Prob. 17SQCh. 11 - Prob. 18SQCh. 11 - Prob. 19SQCh. 11 - Prob. 20SQ
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- Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input.Each pizza sells for $5. How many workers will Joe hire if he must pay each one $45 a day? Number of Workers Pizzas Baked Per Day 0 0 1 10 2 18 3 24 4 30 5 32arrow_forward1. Julie needs to hire a plumber. She is told that the cost of hiring the plumber, C, is determined by the amount of time spent on the job, t, in hours. The plumber charges a one-time fee of $30 and an hourly rate of $40. How many hours did the plumber work if Julie paid him $190? Find the value for C (total cost) when time, t =0. Write a sentence describing its meaning.arrow_forwardAaron has been spending five nights studying for his math tests and his current grade in the course is 90 percent. He decides to take a part-time job and study only four nights for his next test. As a result, after his next test, his grade falls to 70 percent. What is Aaron's marginal cost of working one night a week? Aaron's marginal cost of working one night a week is OA. 20 percentage points OB. greater than 70 percentage points and less than 90 percentage points OC. 70 percentage points OD. 90 percentage pointsarrow_forward
- The price of factor A is GHC20 per unit and the price of factor B is GHC300.00 per unit.The marginal product of factors A is 40units and the marginal product of factor B is 60units.Should the firm increase the employment of factor A and decrease the employment of B to minimize the total long run cost of producing existing output?Explainarrow_forwardCapital (K) 60 60 45 T A T' Q = 1,000 0 60 Labor (L) 240 What is the Marginal Rate of Technical Substitution (MRTS) (slope of the isoquant Q=1000) at point A? Line TT'is tangent to the isoquant Q-1000 at point A. Please show your calculations.arrow_forwardGull Roza is a florist specializing in floral arrangements for weddings, graduations, and other events. Gull Roza has a fixed cost associated with space and equipment of $50 per day. Each worker is paid $80 per day. The daily production function for Gull Roza is shown in the accompanying table. Quantity of Labor (workers) Quantity of floral arrangements 0 0 1 110 2 200 3 270 4 300 5 320 6 320 Calculate the marginal product of each worker. Calculate the marginal cost, Average total cost, and average variable cost of each level of output.arrow_forward
- From the production data in the table below, calculate the VMP, for the 2nd unit of labor. Assume the wage rate is $80 and the price of the firm's output is $5. (Give the numeric value only for your response; do not include commas, dollar signs, etc.) Capital Labor Output (Q) 100 100 1 20 100 44 100 66 100 4 84 100 96 100 104 100 7 98 Numeric Responsearrow_forwardWhat does diminishing marginal product imply? The marginal cost of an extra worker is unchanged. The marginal cost of an extra worker is less than the previous worker's marginal cost. The marginal product of an extra worker is less than the previous worker's marginal product. The marginal product of an extra worker is greater than the previous worker's marginal product.arrow_forwardAfter Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true? The marginal product of the 8th worker is negative. The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired. Suzie's profits would be greater if she did not hire the 8th worker. The average product of labor is negative. Question 14 Which of the following statements is true? The average product of labor is at its maximum when the average product of labor equals the marginal product of labor. The average product of labor is at its minimum when the average product of labor equals the marginal product of labor. The average product of labor tells us how much output changes as the quantity of workers hired changes. Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.arrow_forward
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